Arkema OTC Stock Volatility

ARKAF -  USA Stock  

USD 134.00  0.63  0.47%

We consider Arkema very steady. Arkema secures Sharpe Ratio (or Efficiency) of 0.14, which signifies that the company had 0.14% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Arkema, which you can use to evaluate the future volatility of the firm. Please confirm Arkema risk adjusted performance of 0.0939, and Mean Deviation of 0.1759 to double-check if the risk estimate we provide is consistent with the expected return of 0.0935%.

Arkema Volatility 

 
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Arkema OTC Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Arkema daily returns, and it is calculated using variance and standard deviation. We also use Arkema's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Arkema volatility.

60 Days Market Risk

Very steady

Chance of Distress

Below Average

60 Days Economic Sensitivity

Barely shadows the market

Arkema Market Sensitivity And Downside Risk

Arkema's beta coefficient measures the volatility of Arkema otc stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Arkema otc stock's returns against your selected market. In other words, Arkema's beta of 0.0657 provides an investor with an approximation of how much risk Arkema otc stock can potentially add to one of your existing portfolios.
Let's try to break down what Arkema's beta means in this case. As returns on the market increase, Arkema returns are expected to increase less than the market. However, during the bear market, the loss on holding Arkema will be expected to be smaller as well.
3 Months Beta |Analyze Arkema Demand Trend
Check current 90 days Arkema correlation with market (DOW)

Arkema Beta

    
  0.0657  
Arkema standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  0.69  
It is essential to understand the difference between upside risk (as represented by Arkema's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Arkema stock's daily returns or price. Since the actual investment returns on holding a position in Arkema stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Arkema.

Arkema OTC Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Arkema Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

Arkema Projected Return Density Against Market

Assuming the 90 days horizon Arkema has a beta of 0.0657 . This suggests as returns on the market go up, Arkema average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Arkema will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Arkema or Basic Materials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Arkema stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Arkema stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.0789, implying that it can generate a 0.0789 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Arkema OTC Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Arkema or Basic Materials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Arkema stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Arkema stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Assuming the 90 days horizon the coefficient of variation of Arkema is 738.57. The daily returns are distributed with a variance of 0.48 and standard deviation of 0.69. The mean deviation of Arkema is currently at 0.18. For similar time horizon, the selected benchmark (DOW) has volatility of 0.71
α
Alpha over DOW
0.08
β
Beta against DOW0.07
σ
Overall volatility
0.69
Ir
Information ratio 0.08

Arkema OTC Stock Return Volatility

Arkema historical daily return volatility represents how much Arkema stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm shows 0.6909% volatility of returns over 90 . By contrast, DOW inherits 0.7076% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Arkema Volatility

Volatility is a rate at which the price of Arkema or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Arkema may increase or decrease. In other words, similar to Arkema's beta indicator, it measures the risk of Arkema and helps estimate the fluctuations that may happen in a short period of time. So if prices of Arkema fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Arkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France. Arkema operates under Specialty Chemicals classification in the United States and is traded on OTC Exchange. It employs 19794 people.

Arkema Investment Opportunity

DOW has a standard deviation of returns of 0.71 and is 1.03 times more volatile than Arkema. of all equities and portfolios are less risky than Arkema. Compared to the overall equity markets, volatility of historical daily returns of Arkema is lower than 5 () of all global equities and portfolios over the last 90 days. Use Arkema to enhance returns of your portfolios. The otc stock experiences a normal upward fluctuation. Check odds of Arkema to be traded at $140.7 in 90 days. . Let's try to break down what Arkema's beta means in this case. As returns on the market increase, Arkema returns are expected to increase less than the market. However, during the bear market, the loss on holding Arkema will be expected to be smaller as well.

Significant diversification

The correlation between Arkema and DJI is Significant diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Arkema and DJI in the same portfolio assuming nothing else is changed.

Arkema Additional Risk Indicators

The analysis of Arkema's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Arkema's investment and either accepting that risk or mitigating it. Along with some common measures of Arkema stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance0.0939
Market Risk Adjusted Performance1.24
Mean Deviation0.1759
Coefficient Of Variation750.06
Standard Deviation0.6804
Variance0.4629
Information Ratio0.0788
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Arkema Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Arkema as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Arkema's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Arkema's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Arkema.
Please continue to Trending Equities. Note that the Arkema information on this page should be used as a complementary analysis to other Arkema's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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When running Arkema price analysis, check to measure Arkema's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arkema is operating at the current time. Most of Arkema's value examination focuses on studying past and present price action to predict the probability of Arkema's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Arkema's price. Additionally, you may evaluate how the addition of Arkema to your portfolios can decrease your overall portfolio volatility.
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The market value of Arkema is measured differently than its book value, which is the value of Arkema that is recorded on the company's balance sheet. Investors also form their own opinion of Arkema's value that differs from its market value or its book value, called intrinsic value, which is Arkema's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arkema's market value can be influenced by many factors that don't directly affect Arkema underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Arkema's value and its price as these two are different measures arrived at by different means. Investors typically determine Arkema value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arkema's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.